The Business Case for Metering Mitchell Stein, Quadlogic

The Business Case for Metering Our main focus: Identify the practical approaches and best practices of an Advanced Metering System as it includes Metering & Submetering Foster an understanding of the benefits and complexities of an Advanced Metering System Highlight the economic and operational benefits achievable through the submetering of buildings 2

The Business Case for Metering The intent: Identify the economic benefits & more How to use data: Daily, Near Real-Time & Real-Time How to pinpoint performance variations over time & relative to other buildings How to use meter data to drive operational improvements How to use meter data to encourage behavioral and operational changes 3

The Business Case for Metering Learning Objectives: Evaluate economic and technical feasibility using life cycle cost analysis Demonstrate the cost of submetering and the cost of missed opportunities. Define level of data collection needs & economics Discuss ways to utilize information Strategies for successful submetering projects 4

Motivation Congress passed EPAct of 2005; EISA of 2007; and the goals in EO’s & 13514… requiring all Federal buildings shall, for the purposes of efficient use of energy and reduction in the cost of electricity, natural gas, steam and water used in buildings, where cost effective, be metered or submetered Each agency shall use, to the maximum extent practical, Advanced Metering Systems that provide data at least daily and that measure at least hourly consumption of electricity in the Federal buildings of the agency 5

Motivation Data shall be incorporated into existing Federal energy tracking systems and made available to facility energy managers These guidelines must take into consideration, “the cost of metering and submetering and the reduced cost of operation and maintenance expected” The DOD also requires that metering be installed on all new construction and utility renovation projects exceeding $200,000 6

Benefits of Advanced Metering Systems Advanced Metering Systems can be very helpful to energy managers, facility engineers, financial managers and their tenants. An Advanced Metering System collects : – Electric consumption data & real-time phase diagnostics, kWh, kW, % THD, KVARLeading, KVARLagging, V, Current, Phase Angle, Power Factor, Watts, VA & Freq., V/Ph, V-Sqrd hrs, A-Sqrd hrs & more! – Communicates with all other meters that collect: Gas, Water, Steam, Potable Water and BTU’s – Delivers all of the collected data to the designated PC or Building Management System (BMS) or Building Automation System (BAS) on either a daily basis or on request 7

Benefits of Metering & Submetering Data gathered from daily, weekly and monthly electricity-consumption profiles helps identify many areas of savings Eliminates the concern of erroneous inter-departmental and tenant energy consumption bills: Identifies equipment left on during non-working hours Shift energy usage to off-peak periods KEY POINT KEY POINT! Measurement & Verification (M&V) - Compares energy usage month to month - tenants & departments; or between similar buildings to identify problems Measures bottom-line $$$ savings from energy initiatives 8

Are Meters & Submeters the Same? Federal facility & energy managers, GSA, REM’s & Military budget analysts are all under increased pressure to reduce costs, increase ROI and drive energy efficiency KEY POINT! Many Federal buildings are not individually metered down to building operations, departments or tenants Utility companies providing energy to a building will install it’s own master meter. This meter will provide kWh and Demand data (for energy); or for a water utility meter, flow rates and peak rates in order for the utility to monitor and bill for services 9

Are Meters & Submeters the Same? The importance of submetering can be summed up in the Energy Manager’s maxim: – If you don’t collect it – you can’t measure it – If you don’t measure it – you can’t manage it Metering down to individual loads or sub-panels will require a meter to be located within the service’s distribution network; after the utility master meter, hence a submeter. WORTH REPEATING ! ! MC5c High-Density Advanced Meter System by QLC

Are Meters & Submeters the Same? kWh & kW Submeters monitor & retain kWh on an hourly basis and monitor & retain kW – 15 minute intervals (for C & I) Placing submeters where they make sense & coupled with the diagnostic use of the data will lead to increased efficiency and BIG $ avings! 11

The Cost of Metering & Submetering The cost of an Advanced Metering System which includes submetering of individual operations, panel loads and tenants, can potentially be designed with multiple parameters resulting in “Over-Kill” An AMS that suffers from Over-Kill will die due to cost over-run! 12

The Design Phase Assigning priorities is critical to success:  Vital – Daily, NRT & RT & Budget $ for a full time engineer  Alarms, Auto Shedding, notification  How often will I use the data  then and only then can a cost effective Advanced Metering System be created. 13 These are the questions you need to ask !

Yes, Management Matters Management’s priorities and their understanding of what’s important will affect how data will be used Rate structures, tariffs, and TOU’s constantly change, and imputing these rates need to be accurate. Only then will the true costs and benefits of their decisions be realized Everyone needs to understand the true ROI 14

Driving & Demonstrating Operational Improvements Information from demand-interval meters is very important to energy managers. WHY? Examining daily & weekly to seasonal energy-use profiles can help identify potential savings. HOW? Examining a daily electricity-use profile can help identify ways to shift consumption from peak to off-peak periods and help keep demand levels below contracted thresholds. GOT OFFICE? 15

Driving & Demonstrating Operational Improvements Often energy efficiency investments are based on engineering estimates which may be incorrect Submeters measure the effects of installing new energy-efficient technologies. Without submetering, there is no “M & V” ! Submeters properly positioned will provide an accurate measurement of savings which can be replicated throughout the building(s) Submeters improve cost allocation. Activities and individuals have little incentive to conserve electricity if those efforts aren’t measured and applauded 16

Driving & Demonstrating Operational Improvements Submeters help facility managers make smarter decisions whether existing equipment must be maintained or if new equipment s/b installed – Measuring the ROI on these initiatives can prove cost-effective results Federal agencies often contract with ESPC’s to install equipment ESPC’s may only install meters in limited areas creating a limited system. – When investing in a new chiller, it’s guaranteed that the new chiller will be submetered. – Investing in new lighting fixtures where the tenants say are not adequate, you can bet they will supplement their own lighting sources. Without submetering any loss of saving would be never be known. Submeters provide bottom-line savings after adjusting for human behavior 17

Encouraging Behavorial & Operational Changes Public and private research show when data from Advanced Metering Systems is understood, the energy saving steps taken typically save from 5 percent to 25 percent of electric costs, with most buildings showing between 10 & 20 percent $ avings! 18

Costs of Advanced Metering Systems There three major components to estimating the cost of an effective Advanced Metering System : – The cost to install, maintain and monitor a kWh & Demand submeter – The number of services and loads monitored per building – The number of buildings within a facility The cost of submeters that provide kWh & Demand Interval and depending on the CT amperage range from $ 2, to $ 5, & higher!! THIS DOES NOT include installation costs, or the costs for the additional pipe and wire. Wait for the tip on PLC Without a full engineering review, it is difficult to know the exact cost to implementing a new AMS. 19

The DECISION TREE What’s important: – What must be monitored? In a VA Hospital? Military Installation? Federal Office Building or Data Center? What loads or panels are important to monitor? – ER, ICU, OR, Patient Floors; GSA Tenants; HVAC, Lighting, Chillers, Data Loads, House loads, Elevator Loads, Is there a BMS or BAS? What is the protocol? Is this a Retrofit? Will the data be secure and reliable? What is the timing of the data? Will we need additional funding to support additional personnel? 20

Maintenance, Data Collection & Meter-Reading Costs Most submeters are very reliable with almost no maintenance. There are a number of Data Collection Systems available: – Manual Read – Outdated, Inefficient & Costly. And unless you’re using an Optical Scanner - Inaccurate – Phone Modem – Once considered modern technology, POTS is old school – Local Area Network – LAN / IP takes advantage of the building’s network 21

Maintenance, Data Collection & Meter-Reading Costs – A BMS or BAS – Requires an Advanced Metering System Data moves from the submeter to the point of analysis. Requires an extensive and costly RS communication wiring network (with pipe & wire). But it will deliver Real-Time Data when required – Power Line Communication (PLC) A PLC system communicates data on the existing building phase wire system. It is a reliable and cost effective communication data network. However, a PLC system can only deliver Near Real-Time Data. – How does PLC Work? – Radio Frequency (RF) Communication through radio frequency. Although RF requires little- to-no wiring, it is not a secure system. It can be infiltrated. Caution also needs to be taken because of the potential for interference and communication through structural barriers. 22

How does PLC Work?

Meter-Reading Options Contract with a RBC to read, bill and service your system. The cost of reading each submeter can range from $3.50 / mo. -$11.00 / mo. Federal facilities managers are turning to remote monitoring and energy data management software solutions. There are a number of BMS / BAS or independent systems Submeters may be the smallest cost of an AMS. Knowing when the data is necessary: Daily, Near Real-Time or Real-Time can significantly impact the cost of the project. There are Web-Based software systems, “hosted in the cloud” that cost $ for up to 50 meter points with Near Real-Time Data & $ 15, for up to 200 meter points. Real-Time systems can cost in excess of $40, plus meters and installation 24

Implementation Guidance and Priority The Federal Energy Management Program (FEMP ) gives some general guidelines for submetering: – FEMP suggests submetering only those buildings with electrical demands over 200 kW. Submetering may not be justified in buildings with annual electric bills of less than $1, – Federal facilities should submeter its largest users of electricity first. They’re likely to offer the greatest opportunity for savings 25